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Texas Solar Market
Source: IREC Solar Market Trends (http://www.irecusa.org/publications/ )
0.6 1.8 6
31.9
83
137.7
213.3
2007 2008 2009 2010 2011 2012 2013
Meg
awat
ts
Cumulative Installed Capacity in Texas
354% Increase over 6 years
Installed Capacity per Capita
Source: REN 21, World Bank
439
289268
140
118107
7052
39 15 5
Germany Italy Belgium Australia Spain Japan France UK US China Texas
Wat
ts p
er C
apit
a (2
01
3)
439 Watts Per Person
5 Watts Per Person
Solar Costs in US Compared to Germany
Source: NREL (http://www.nrel.gov/docs/fy14osti/60412.pdf) LBNL (http://emp.lbl.gov/sites/all/files/lbnl-6350e.pdf) (http://www1.eere.energy.gov/solar/pdfs/sunshot_webinar_20130226.pdf )
$1.42 $1.45
$2.32
$0.62
US SOLAR COST GERMAN SOLAR COST
$ P
ER W
ATT
Hardware CostNon-Hardware Cost
$-
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
$3.50
$4.00
US Solar Cost German Solar Cost
$ p
er W
att
Column1
Non-Hardware Cost
Hardware Cost
The Cost of Solar in the US
Source: NREL (http://www.nrel.gov/docs/fy14osti/60412.pdf) LBNL (http://emp.lbl.gov/sites/all/files/lbnl-6350e.pdf) (http://www1.eere.energy.gov/solar/pdfs/sunshot_webinar_20130226.pdf )
$0.00
$0.20
$0.40
$0.60
$0.80
$1.00
$1.20
$1.40
$1.60
$ p
er W
att
Other Paperwork
Permitting & Inspection
Financing Costs
Customer Acquisition
Installation Labor
Solar Soft Costs
Source: Jay Squyres, North Texas Renewable Energy Group, December 2014
2,175 locations with solar permits
*Estimated 550,000 solar ready homes in DFW region
Keller ISDBedford Duncanville
Solar Ready II
US Department of Energy (DOE) SunShot Initiative – Drive down cost of solar electricity to $0.06 per kilowatt-hour
SunShot Initiative Rooftop Solar Challenge – Incentivizes regional efforts to make it easier to go solar
Solar Ready II Partners:• Mid-America Regional Council (MARC)• National Association of Regional
Councils (NARC)• Meister Consultants Group (MCG)• Council of State Governments (CSG)
Solar Ready II Goals:• Implement solar best management
practices, training materials and methods, and other proven implementation strategies
• Result in more streamlined and standardized solar practices
• Achieve measurable improvements in solar market conditions and access for ten million people
Top BMP Choices by Solar Ready II Stakeholders
• Develop criteria for expedited process
• Create a permit checklist
• Provide a central information sourceStreamline Permits
• Fixed fees for residential permits
• Calculator for commercial permits
Standardize Permit Fees
• Pre-qualify installers
• Pre-qualify electrical plans
Pre-Qualify Plans and Installers
Permitting and Education
Opportunities
Solar Ready II Results
BMP’s
Education
Training/Resources
IN PROGRESS - GO SOLAR NORTH TEXAS WEBSITE
What’s Next
TRAFFIC SIGNALSEMERGENCY PREPARDENESS HOSPITALSWATER INFRASTRUCTURE
ELECTRIC CO-OP OUTRECACHCOLLECTIVE PURCHASING “SOLARIZE” MODEL
COMMUNITY SOLAR MODEL
Acknowledgment: This material is based upon work supported by the U.S. Department of Energy under Award Number DE-EE0006310
Disclaimer: This presentation was prepared as an account of work sponsored by an agency of the United States Government. Neither the United Sates Government nor any agency thereof, nor any of their employees, makes any warranty, express or implied, or assumes any legal liability or responsibility for the accuracy, completeness, or usefulness of any information, apparatus, product, or process disclosed, or represents that its use would not infringe privately owned rights. Reference herein to any specific commercial product, process, or service by trade name, trademark, manufacturer, or otherwise does not necessarily constitute or imply its endorsement, recommendation, or favoring by the United States Government or any agency thereof. The views and opinions of authors expressed herein do not necessarily state or reflect those of the United States Government or any agency thereof.
www.eere.energy.gov/solarchallenge
Tamara Cook
Manager
(817) 695-9221
Lori Clark
Principal Air Quality Planner
(817) 695-9232
Websiteswww.nctcog.org/solar
Solar Ready II Contacts
Agenda
1
Solar Photovoltaic1. System Implementation and Requirements
March 2015
www.jacobs.com worldwideNorth Central Texas
Council of Governments
• Welcome / Presenter
Introductions / COG –
Jacobs
• Goal of Presentation
• Audience Polls
Introductions
Agenda
3
1. Introduction
2. How Solar PV Works
3. Solar PV Warranties and Expected System Life
4. Solar PV Rebates and Incentives
5. Solar Implementation Process/Steps
6. Utility Interconnection Requirements
7. Solar PV Code Corner
8. Open Discussion/Questions
Agenda
Intro to Solar PV
• Solar is part of the energy “mix” for the future
– It is not the solution to our energy needs
– Solar is a “Variable Load” energy source
• Wind
• Energy Storage Solutions are Required
– Batteries (Tesla), fly wheel, ???
• “Base Load” energy production is required
– Oil/gas, nuclear, hydro, geothermal
Intro to Solar PV
How Solar PV Works
• Net metering and time of
use
– Net metering allows meter
to spin in either direction
and energy produced is
credited at retail rate
– Time-of-use (TOU) allows
credit to accumulate at the
TOU rate
– These two concepts are
critical in the financial
feasibility of renewable
energy
How Solar PV Works
• How solar works
– How photovoltaic cells
function
– Crystalline,
amorphous, thin-film,
concentrated, etc. all
work on the same
principle
Primary Solar Components:
Solar PV modules
generate DC current
Shade, clouds, dirt,
orientation impacts
efficiency
20-25 year warranty
Low maintenance
Photovoltaic Modules Support Rack
Converts power from DC
to AC
10 year warranty
Inverter
Ground Mount
Solar Canopies
Roof Mount
How Solar PV Works
• PV Modules:
– Sharp – common module in US
– 25 yr warranty – made in US
– Cost/watt not efficiency!
How Solar PV Works
How Solar PV Works
• Module efficiency versus cost per watt
• Sunpower = most efficient 20%
• Sanyo = 19%
• JA Solar = 17%
• Cost/Supply of pure silicon
• Emerging Solar Technology (Solyndra)
• Solar PV module manufacturing (China market versus the world)
• Module expected life span (no moving parts)
• Module replacement challenges
• Next “big breakthrough” (PV modules are almost identical to modules 25 years ago)
• Major improvements in manufacturing
How Solar PV Works
How Solar PV Works
• Solar
modules
• Crystalline
• Mono-
crystalline
• Multi-
crystalline
• Amorphous
• Thin film
• Solyndra
How Solar PV Works
• Orientation to sun
– Solar orientation
– Azimuth and altitude
– Sunlight vs ambient
light
– Effects of shading
– Small % of shade =
huge efficiency loss
– Soiling of modules
– Temperature effects
on performance
How Solar PV Works
• Inverters:
– Converts DC to AC
– Inverter sizes and efficiencies
– Central versus distributed
– Transformer versus transformer-less
– Inverter expected life span (moving parts, failure points)
– Major producers (USA/Germany)
How Solar PV Works
• Residential PV
Inverters
– SMA (Sunny Boy)
– Fronius
– 97% efficient
– 2kW – 10kW
– 15-20 year life
– Fan failures
How Solar PV Works
• Commercial PV
Inverter:
– Advanced energy
– 97% efficient
– 15 year life
– 100kW-500kW+
Continuous Power: 500 kW
AC Operating Range: 423 V - 528 V
CEC Weighted Efficiency: 97.0%
AE 500TX
How Solar PV Works
• Transformerless (TL) Inverters
– Key differences
– Possible benefits
– Installation considerations
How Solar PV Works
• Roof Mount Racks
– Commercial
• Ballasted
– Wind/Seismic
– No roof penetrations
– Roof Warranty
• Penetrated
– Solid anchor to roof
structure
– Multiple roof
penetrations
How Solar PV Works
• Roof Mount Racks
– Residential
• Penetrated
– Composition Roofs
– Tile Roofs
– Metal Roofs
How Solar PV Works
• Ground mount racks
– Pole mount
• Tracking or fixed
• Large array rack
– Fixed or single axis
tracking
How Solar PV Works
• PV parking canopy
– Single or double cantilever
• Open aisles
– Large array canopy
• Covered aisles
How Solar PV Works
• Balance of system
– Combiner boxes
• Basic versus “smart”
– Utility disconnect
– System monitoring
• Software (w/ inverter)
• Weather station
Solar PV Warranties
• Solar PV warranties and expected system life
– Module and inverter warranties from manufacturers
– Actual expected life
– System installation warranty from installer
Solar PV Rebates and Incentives
• DSIRE.org
• Rebates
– 30% Federal Production Tax Credit (PTC)
• Incentives
– Accelerated depreciation (commercial)
– State of Texas incentives
– Utility incentives (Oncore – 5.3kW = $8,600)
Solar Implementation Process and Steps
• Implementation Steps
– PV Provider Selection
– PV Provider Design Process
– Obtaining a Building Permit
– Utility Interconnection Agreement
– Procurement, Installation/Construction, Commissioning
– Building Inspector Approval
– Utility Permission to Operate
– System Activation
Solar Implementation Process and Steps
• PV Provider Selection
– Selection based on experience and PV system cost
• Cost on $/kW (Purchase) or Cost on $’s/kWh (PPA)
• PV Provider Design Process
– Determine PV system size
• Evaluate site for solar access
• Evaluate area available for solar array
• Evaluate annual utility electrical usage
• Evaluate client budget (system purchase vs PPA)
Solar Implementation Process and Steps
• PV Provider
Selection
– System Size
vs Annual
Production
– PV Watts
Solar
Calculator
– PV System
5kW PV System
Ft Worth, TX
Solar Implementation Process and Steps
• PV Provider Selection
– System Location Assumptions
– Impact of Rebates and Incentives
– $3.30/w x 5kW =$16,500
– OncoreIncentive = $5,000; Tax Credit = $5,000
– Total System Cost = $6,500 .08 $/kWh
NCTCOG Solar Checklist
SOLAR PHOTOVOLTAIC (PV) SYSTEM PERMIT APPLICATION CHECKLIST This Permit Application Checklist is intended to be used as a best management practice when establishing local government requirements for residential and commercial solar photovoltaic (PV) system permits. Local governments may modify this checklist to accommodate their local ordinances, code requirements, and permit procedures. The following application items may, at the community’s discretion, be replaced by an expedited process such as those published by the Solar America Board for Codes and Standards or referenced as examples in the Solar Ready II materials posted at www.nctcog.org/solar. 1. REQUIRED INFORMATION Type of Application ☐ Residential ☐ Commercial (Also see Part 2: Commercial Building Requirements) Type of Solar PV System ☐ Roof Top ☐ Ground Mount ☐ Other: Click here to enter text. ☐ Size of System (kW): Click here to enter text. ☐ Completed permit application(s) and supplement information sheet, if required. Select all that apply: (Please contact Building Department for standards) ☐ Roof Top: An electrical permit is required ☐ Ground Mount: Building and electrical permits are required ☐ Other: Building and/or electrical permits may be required ☐ Installed in accordance with the National Fire Protection Association National Electrical Code (NFPA 70) as adopted by the State of Texas, applicable ordinances, districts, and/or special use categories (e.g.: zoning or special use, etc.); subject to plan approval. NOTE: The National Electrical Code (NEC) is the Texas state electrical code. The state adopts the NEC as the State Code on September 1 of any year in which the new NEC Code book is published (every three years). NOTE: Potential impacts of solar PV projects to other development such as airports should be considered and evaluated by the local government as appropriate.
NCTCOG Solar Checklist
SOLAR PHOTOVOLTAIC (PV) SYSTEM PERMIT APPLICATION CHECKLIST ☐ Construction Documents: Two copies of construction documents shall include, but are not limited to, the following items: ☐ Site specific, stamped engineering drawings (reviewed or designed, and sealed by a licensed professional engineer, if determined to be necessary by the building official or their appointed designee), assembly installation plans, manufacturer’s installation instructions, and/or equipment manufacturer’s data sheets. ☐ Make, model, and quantity of module, inverter, and racking system certified to the UL 2703, UL 62109, and UL 1741 standard by a Nationally Recognized Testing Laboratory as appropriate.
NCTCOG, in partnership with the National Association of Regional Councils, the Mid-America Regional Council, Meister Consultants Group, Inc., and the Council of State Governments, is participating in the Solar Ready II program. Solar Ready II is part of the U.S. Department of Energy SunShot Initiative Rooftop Solar Challenge which is striving to position the United States as a global leader in the rapidly-growing solar market. ☐ Framing plans ☐ Method of sealing/flashing for roof penetrations ☐ Connection details to building or ground mount ☐ Structural calculations or load diagram (required only when the PV array weight exceeds 5 lbs./sq. ft) ☐ (may require engineer design if deemed applicable by Building Official) ☐ Data cut sheets for battery storage if applicable (including type of battery) ☐ Site Plan: Include the PV array layout in compliance with the local government design criteria including: ☐ Roof plan showing location of equipment and, if required, fire setbacks ☐ Existing site easements, property lines, building setback lines, zoning setbacks ☐ Typical side view detail of the solar PV system mount on the roof ☐ Location of all existing structures and proposed PV system equipment (including modules, disconnects, inverters, panel boards, combiner boxes, storage batteries, utility meters, etc.) ☐ Plumbing vent termination: Vent termination is not allowed under solar installations and must be relocated or modified, or an air admittance valve may be utilized in accordance with the International Plumbing Code (IPC) and/or the International Residential Code (IRC).
NCTCOG Solar Checklist
SOLAR PHOTOVOLTAIC (PV) SYSTEM PERMIT APPLICATION CHECKLIST ☐ Fire Code Requirements: Installation complies with Section 605.11 of the 2012 International Fire Code (IFC), or a more recent IFC version. ☐ Electrical Plans: In addition to the construction documents, include a three line diagram, or a line diagram that meets the requirements of the local government, and complies with the state NEC. The local government should determine appropriate level of professional design requirements (e.g. preparation by a master electrician licensed by TDLR; designed and sealed by an engineer, if required by the Texas Engineering Practice Act; or PV equipment manufacturer’s engineered line diagram). A proper line diagram should include: ☐ AC and/or DC circuit arc fault protection as required by the NEC or ordinance (if any) ☐ Inverter listed to the UL 62109 or UL 1741 Safety Standard; photovoltaic module(s) listed to the UL 1703 safety standard. Listings conducted by a Nationally Recognized Testing Laboratory. ☐ Inverter AC output disconnect location, utility disconnect location, and AC output over-current protection device rating. ☐ Location of combiner box(es), disconnect switch, size of source circuit overcurrent protection, if required ☐ Service panel bus rating and main circuit breaker/fuse ampere rating ☐ Circuit diagram with conduit, wire type and sizes, and/or cable type and wire sizes ☐ Equipment grounding and bonding conductors and grounding electrode conductor, if applicable ☐ Battery disconnect and overcurrent protection, if applicable ☐ List of all appropriate labels and marking per NEC and IFC requirements 2. ADDITIONAL COMMERCIAL BUILDING INFORMATION ☐ Building Information: Information about the building the PV system will be attached to: ☐ Occupancy Group: Click here to enter text. ☐ Number of Stories: Click here to enter text. ☐ Year Built: Click here to enter text. ☐ Construction Type: Click here to enter text. ☐ Area (Square Feet): Click here to enter text. ☐ Roof Type: Click here to enter text. ☐ Fire Sprinkler System (for fully sprinkled building only)
• Obtaining a Building Permit
– Permit Fees (Varies by City & County)
– Permit Review Duration
• Residential (Over the Counter)
• Commercial
Solar Implementation Process and Steps
Solar Implementation Process and Steps
• Oncore
Interconnection
Agreement
– System Equipment
Information
– Sign away all rights if
there is ever a
problem!
– Identify meter and UL
listing
– TOU Plan
Solar Implementation Process and Steps
• Procurement,
Installation/Construction,
Commissioning
– Procurement & Construction
Durations
– Commissioning
• String voltage
testing/polarity
• Inverter start-up
Solar Implementation Process and Steps
• Building Inspector
Approval
– Safety and NEC
compliance
– Reflects Design
Documents
– Approved specified
products
– Signed off Inspection
card
Solar Implementation Process and Steps
• Utility Permission
to Operate
– AHJ Signed off
Inspection card
– Utility provides
“Certificate to
Operate”
– System may be
energized!
Solar PV Code Corner
• Common Code Violations
– Sloppy workmanship
– Wire management (exposed wires need proper support)
– Equipment not installed to listing (circuit breaker or fuse w/ incorrect amperage rating per NEC 690.8)
– NEMA 3R rating for equipment located outdoors (most 3R enclosures are rated for vertical installations only, use 4R for horizontal)
– UL listed Combiner Boxes only (no “site-made” combiner boxes!)
– Point of Connection (2011 NEC now requires PV breaker in main panel to be located at opposite end of bus bar from the main circuit breaker location)
Solar PV Code Corner
• Common Code Violations (Cont.)
– Labeling – Important but commonly overlooked
• “Direct Current Photovoltaic Power Source” on DC Disconnect
– Articles 690 and 705 require labels which specifies “a permanent plaque or directory providing the location of the service disconnecting means and the photovoltaic system disconnecting means, if not located at the same location.” This isn’t so much a label as it is a map.
– Label material and attachment. The 2008 and 2011 NEC require permanent labels—many installers use plastic or metal engraved signs. When plastic is used, it should not be placed in direct sunlight
Solar PV Code Corner
• Common Code Violations (Cont.)
– Grounding - The requirements for equipment grounding
and system grounding are separate and need to be
evaluated separately.
– The NEC is very clear: “Exposed non–current-carrying
metal parts of module frames, equipment, and
conductor enclosures shall be grounded…regardless of
voltage.” The grounding method accepted industry-wide
is to attach a tinned copper lay-in lug to each module
and rack member, with an appropriately sized ground
conductor bonding each of the modules and racks
together.
Solar PV Code Corner
• Common Code Violations (Cont.)
– System Grounding - Section 690.47 deals specifically with system grounding. This section was completely rewritten in the 2008 Code, and again in 2011 resulting in a number of differing opinions and methodologies.
– Wire Color Coding - If the conductor is a grounded circuit conductor, the insulation must be white or gray. If the conductor is an equipment-grounding conductor, it must have green insulation or be bare.
– Those color codes apply to both ac and dc electrical systems. There is no special color code for dc systems. PV installers insisting that red is positive and black is negative are incorrect!
– SOLAR AMERICA BOARD FOR CODES AND STANDARDS • WWW.SOLARABCS.ORG
Solar PV Code Corner
• Common Code Violations
(Cont.)
– Fire Concerns – Microinverters
allow disconnection of modules
at the modules, i.e. no live DC
circuits. This is not required by
code but many Fire Marshals
are requesting this to protect
firefighters on burning roofs with
PV.
Solar PV Financial Evaluation
• Presentation Sections:
– Introduction
– Current and Historical PV System Costs
– Rebates and Incentives
– PPAs, Leases, Direct Ownership
– Open Discussion/Questions
Solar PV Financial Evaluation
• Introduction:
– Welcome/ Presenter Introductions/ COG – Jacobs
– Goal of presentation – “Overview of Solar PV system
Financial Incentives and Comparison of Financial
Approaches”
– Pooling of audience – inspectors, building officials,
school superintendents, others
– Overview of Presentation Sections/Agenda
Solar PV Financial Evaluation
• Current and Historical PV System Costs per Watt
– PV System cost per watt for Residential and Commercial
• System size and complexity impact cost
– Small system = Higher cost/watt
– Utility scale system (10+ MW) = lowest cost/watt
– Complex system = Higher cost/watt
– Carport Canopy systems = highest cost (added structure and footings)
• Utility energy rates & solar growth
– High Utility rates (CA) results in fast PV growth
– Low Utility rates (FL) results in sluggish PV growth
• PV Cost Trends over time…
– As PV reaches par w/ Utility rates (incl. incentives), PV growth increases
Solar PV Financial Evaluation
• Rebates and
Incentives
– Federal Tax Credits
– State Credits
– Oncor Rebates
– Accelerated
Depreciation
Solar PV Financial Evaluation
• PV Rebates & Incentives:
– State and Utility Solar Programs available
– 30% Federal Tax Credit
– Accelerated Depreciation
– REC’s ($.02/kWh)
Solar PV Rebates and Incentives
Name
State/
Territ
ory
CategoryPolicy/Incentive
Type
Qualified Energy Conservation Bonds (QECBs) USFinancial
IncentiveLoan Program
Denton Municipal Electric - GreenSense Energy
Efficiency Rebate ProgramTX
Financial
IncentiveRebate Program
Business Energy Investment Tax Credit (ITC) USFinancial
Incentive
Corporate Tax
Credit
Farmers Electric Cooperative -
Residential/Agricultural Energy Efficiency Rebate
Program
TXFinancial
IncentiveRebate Program
Tribal Energy Program Grant USFinancial
IncentiveGrant Program
Residential Renewable Energy Tax Credit USFinancial
IncentivePersonal Tax Credit
Residential Energy Conservation Subsidy Exclusion
(Personal)US
Financial
Incentive
Personal Tax
Exemption
Renewable Energy Systems Property Tax Exemption TXFinancial
Incentive
Property Tax
Incentive
Modified Accelerated Cost-Recovery System
(MACRS)US
Financial
Incentive
Corporate
Depreciation
USDA - Rural Energy for America Program (REAP)
GrantsUS
Financial
IncentiveGrant Program
USDA - Rural Energy for America Program (REAP)
Loan GuaranteesUS
Financial
IncentiveLoan Program
FHA PowerSaver Loan Program USFinancial
IncentiveLoan Program
USDA - High Energy Cost Grant Program USFinancial
IncentiveGrant Program
TexasIncentives/Policies for Renewables & Efficiency
Financial Incentives
DSIREUSA.org
Solar PV Rebates and Incentives
TexasIncentives/Policies for Renewables & Efficiency
Financial Incentives
DSIREUSA.org
Name
State/
Territ
ory
CategoryPolicy/Incentive
Type
U.S. Department of Energy - Loan Guarantee
ProgramUS
Financial
IncentiveLoan Program
El Paso Electric Company - Solar PV Pilot Program TXFinancial
IncentiveRebate Program
City of Plano - Smart Energy Loan Program TXFinancial
IncentiveLoan Program
City of Sunset Valley - PV Rebate Program TXFinancial
IncentiveRebate Program
City of Houston - Property Tax Abatement for Green
Commercial BuildingsTX
Financial
Incentive
Property Tax
Incentive
Residential Energy Conservation Subsidy Exclusion
(Corporate)US
Financial
Incentive
Corporate Tax
Exemption
Energy-Efficient Mortgages USFinancial
IncentiveLoan Program
Oncor Electric Delivery - Commercial and Industrial
Rebate ProgramTX
Financial
IncentiveRebate Program
CoServ - Solar Energy Rebate TXFinancial
IncentiveRebate Program
Oncor Electric Delivery - Solar Photovoltaic
Standard Offer ProgramTX
Financial
IncentiveRebate Program
City of San Marcos - Distributed Generation Rebate
ProgramTX
Financial
IncentiveRebate Program
Xcel Energy - Residential and Hard-to-Reach
Standard Offer ProgramTX
Financial
IncentiveRebate Program
Austin Energy - Residential Solar Loan Program TXFinancial
IncentiveLoan Program
Solar PV Rebates and Incentives
TexasIncentives/Policies for Renewables & Efficiency
Financial Incentives
DSIREUSA.org
Name
State
/
Territ
ory
CategoryPolicy/Incentive
Type
Denton Municipal Electric - GreenSense Solar
Rebate ProgramTX
Financial
IncentiveRebate Program
CPS Energy - Solar PV Rebate Program TXFinancial
IncentiveRebate Program
Guadalupe Valley Electric Cooperative -
Renewable Energy RebatesTX
Financial
IncentiveRebate Program
LoanSTAR Revolving Loan Program TXFinancial
IncentiveLoan Program
Solar and Wind Energy Device Franchise Tax
DeductionTX
Financial
Incentive
Corporate Tax
Deduction
Solar and Wind Energy Business Franchise Tax
ExemptionTX
Financial
Incentive
Industry
Recruitment/Suppo
rt
Austin Energy - Residential Solar PV Rebate
ProgramTX
Financial
IncentiveRebate Program
AEP Texas Central Company - SMART Source
Solar PV Rebate ProgramTX
Financial
IncentiveRebate Program
AEP Texas North Company - SMART Source Solar
PV Rebate ProgramTX
Financial
IncentiveRebate Program
Austin Energy - Commercial Solar PV Incentive
ProgramTX
Financial
Incentive
Performance-
Based Incentive
Clean Renewable Energy Bonds (CREBs) USFinancial
IncentiveLoan Program
Solar PV Rebates and Incentives
• PV Financing – Owner Purchased:
– Requires capital to finance
– Owner responsible for O&M
– Owner monetizes rebates/incentives
– Generally most advantageous to private (taxable)
entities
– Not a common approach for Government entities due to
lack of taxable benefits (unless PV grants are available)
Solar PV Rebates and Incentives
• PV Financing – Power Purchase Agreement
(PPA):
– Agreement w/ LLC to own, operate, finance, install and
maintain PV system
– Facility owner agrees to purchase all power generated
at a fixed or escalating rate for a fixed period (typ 20
yrs)
– Requires no capital investment
– Generally most advantageous to Government (non-
taxable) entities
– PPA is typically for PV systems 250 kW and larger
Solar PV Rebates and Incentives
• PPA Comparison:
– Pros:
• No capital is required by the Client
• Client can focus on its mission instead of energy production
• No system maintenance by Client
• Client only pays for actual power produced
• Cost of power is generally slightly lower than utility rate
• Rebates and Incentives are monetized into the PPA
– Cons:
• Overall cost of energy savings are minimal
• Limited control of the PV system on site
• Monthly electric bills to PPA provider and utility
Solar PV Rebates and Incentives
• PV Financing – Lease:
– Requires down payment
– Typical 15 year term
– System owner (3rd party) monetizes rebates/incentives
– Lease payment is fixed rate not tied to the power
generated
– Common for government entities where PPA is not
allowed
– System owner is responsible for O&M
Solar PV Rebates and Incentives
• PV Financing:
– 7 year buyout of PPA or “Flip”
– Operations budget versus Capitol Improvement budget
Solar PV Code Changes
• New for 2015 NEC
– 210.5 (c) (2) ungrounded DC conductors #6 and
smaller is required to be red for positive and black for
negative.
– 690.12 a rapid shutdown system for the PV system
that de-energizes all wiring from the PV module within
10 seconds of being activated, all components listed
and labeled.